MASTER 
NEGATIVE 

NO.  94-82237 


COPYRIGHT  STATEMENT 


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Author: 

U.S-  Interstate  Commerce 
Commission 

Title: 

Form  of  general  balance 
sheet  statement  as... 

Place: 

Washington,  D.C. 

Date: 

1909 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

BIBLIOGRAPHIC  MICROFORM  TARGET 


ORIGINAL  MATERIAL  AS  FILMED  -    EXISTING  BIBLIOGRAPHIC  RECORD 


U,  S,     Interni.ate  comneroe  coniniission. 

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scribed  by  the  Interstate  oonmerce  coTunission  f or  ■ 
stean  roads  in  accordance  v/ith  f5ect?.on  20  of  the  -. 
Act  to  regulate  commerce.  First  isnue.  Effective 
on  July  1,  1909,  Vfashington,  Govt,  print,  off., 
1909. 

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COMMERCE 


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THE  INTEKSTATE  COMMERCE  COMMISSION. 


IklARTiN  A.  Knapp,  of  New  Yorh 
JuDSON  C.  Clements,  of  Georgia. 
Charles  A.  Prouty,  of  Vermont 
Francis  M.  Cockrell,  of  Missouri. 
Franbxin  K.  Lane,  of  California. 
Edgar  E.  Clark,  of  Iowa. 
James  S.  Harlan,  of  Illinois, 

Edward  A.  Moseley,  Secretary. 

(3) 


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Commissioners. 


At  a  General  Session  of  the  INTERSTATE  COMMERCE 
COMMISSION,  held  at  its  Office  in  Washington,  D.  C, 
on  the  21st  day  of  June,  1909. 

Present: 

Martin  A.  Knapp, 
JuDSON  C.  Clements, 
Charles  A.  Prouty, 
Francis  M.  Cockrell, 
Franklin  K.  Lane, 
Edgar  E.  Clark, 
James  S.  Harlan, 

The  subject  of  a  Uniform  General  Balance  Sheet  State- 
ment for  the  use  of  carriers  making  reports  to  the  Conmiis- 
sion,  and  of  the  Ledger  Accounts  immediately  pertaining 
thereto,  being  under  consideration,  the  following  order 
was  entered : 

It  is  ordered,  That  the  Form  of  General  Balance  Sheet 
Statement,  with  the  classification  of  the  accounts  involved 
in  such  statement  and  the  text  pertaining  thereto,  pre- 
pared under  the  direction  of  this  Commission  by  Henry  C. 
Adams,  in  charge  of  Statistics  and  Accounts,  and  embodied 
in  printed  form,  to  be  hereafter  known  as  Form  of  General 
Balance  Sheet  Statement,  a  copy  of  which  is  now  before 
this  Commission,  be,  and  the  same  is  hereby,  approved ; 
that  a  copy  thereof  duly  authenticated  by  the  Secretaiy  of 
the  Commission  be  filed  in  its  archives,  and  a  second  copy 
thereof,  in  like  manner  authenticated,  in  the  office  of  the 

(5) 


Bureau  of  Statistics  and  Accounts;  and  that  each  of 
said  copies  so  authenticated  and  filed  shall  be  deemed  an 
original  record  thereof. 

It  is  further  ordered,  That  the  said  Form  of  General  Bal- 
ance Sheet  Statement,  with  the  classification  of  the  ac- 
counts involved  in  such  statement  and  the  text  pertainmg 
thereto,  be,  and  is  hereby,  prescribed  for  the  use  of  carriers 
by  rail  (exclusive  of  electric  railways)  subject  to  the  pro- 
visions of  the  act  to  regulate  commerce  as  amended  June 
29,  1906,  in  the  keepmg  and  recording  of  all  transactions 
reflected  m  the  said  Form  of  General  Balance  Sheet  State- 
ment ;  that  each  and  every  such  carrier  and  each  and  every 
receiver  or  operating  trustee  of  any  such  carrier  be  re- 
quired to  keep  all  accounts  involved  in  the  Form  of  Gen- 
eral Balance  Sheet  Statement  in  conformity  therewith; 
and  that  a  copy  of  such  Form  of  General  Balance  Sheet 
Statement  be  sent  to  each  and  every  such  carrier  and  to 
each  and  every  receiver  or  operating  trustee  of  any  such 
carrier. 

It  is  fuHher  ordered,  That  the  rules  contained  in  said  Form 
of  General  Balance  Sheet  Statement  are,  and  by  virtue  of 
this  order  do  become,  the  lawful  rules  according  to  which 
all  entries  in  the  accounts  involved  in  such  statement  are 
defined;  and  that  each  and  every  person  directly  in 
charge  of  the  accounts  of  any  such  carrier  or  of  anv 
receiver  or  operating  trustee  of  any  such  carrier  is  hereby 
required  to  see  to,  and  under  the  law  is  responsible  for,  the 
correct  apphcation  of  the  said  rules  in  the  keeping  and  re- 
cording of  all  transactions  pertaining  to,  or  reflected  in,  the 
said  Form  of  General  Balance  Sheet  Statement;  and  that 
it  shall  be  unlawful  for  any  such  carrier  or  for  any  receiver 
or  operating  trustee  of  any  such  carrier,  or  for  any  person 
directly  in  charge  of  the  accounts  of  any  such  carrier  or 
of  any  receiver  or  operating  trustee  of  any  such  carrier, 
to  keep  any  account  or  recortl  or  memorandum  of  any 


transactions  pertaining  to,  or  reflected  in,  the  said  Form 
of  General  Balance  Sheet  Statement  except  in  the  manner 
and  form  hereby  prescribed :  Provided,  however.  That  noth- 
ing in  this  order  shall  be  construed  as  depriving  a  carrier 
of  the  right  to  make  whatever  analysis  of  balance-sheet 
entries  it  may  deem  proper  for  the  information  of  stock- 
holders or  of  officials  who  have  the  management  of  its 
property. 

It  is  further  ordered.  That  July  1,  1909,  be,  and  is 
hereby,  fixed  as  the  date  on  which  said  Form  of  General 
Balance  Sheet  Statement  shall  become  effective. 

A  true  copy. 

Edw.  a.  Moseley, 

Secretary, 


INTRODUCTORY  LETTER. 


Interstate  Commerce  Commission, 
Bureau  of  Statistics  and  Accounts, 

Washington,  June  il ,  1909, 

To  Carriers  Concerned: 

The  Form  of  General  Balance  Sheet  Statement  pro- 
mulgated under  the  foregoing  order  will  be  incorporated 
in  the  Forms  for  Annual  Report  of  Carriers  to  the  Inter- 
state Commerce  Commission  for  the  year  ending  June  30, 
1910,  unless  modified  by  an  order  of  the  Commission 
before  that  date.  In  any  case,  carriers  whose  current 
accounts  are  kept  in  such  a  manner  as  to  enable  them  to 
report  on  the  balance-sheet  statement  herewith  promul- 
gated will  be  able  to  make  any  balance-sheet  statement 
which  the  Conmussion  may  finally  accept  as  satisfactory. 

There  will  shortly  be  issued  a  Special  Report  Series 
Circular  calUng  for  the  adjustment  of  assets  and  habil- 
ities  as  of  June  30,  1909,  to  the  form  of  balance-sheet 
statement  promulgated  under  the  present  order,  with  a 
view  of  testing  its  practicability  and  of  collating  all  dif- 
ficulties incident  to  its  use.  Any  modification,  should 
modification  be  thought  desirable,  will  be  made  as  the 

result  of  this  test. 

Henry  C.  Adams, 
In  charge  of  Statistics  and  Accounts, 

90303—09 2  (9) 


COISTTENTS. 


r, 


I 


Page. 
Form  op  Genebal  Balance  Sheet  Statement 15 

GENERAL  ACCOUNTS. 

Assets — 

Property  Owned  as  Investment 18 

Working  Assets 21 

Deferred  Debit  Items 23 

Deficit 28 

Liabilities — 

Stock 28 

Mortgage,  Bonded,  and  Secured  Debt 29 

Working  Liabilities 32 

Accrued  Liabilities  Not  Due 34 

Deferred  Credit  Items 34 

Appropriated  Surplus 35 

Free  Surplus.. 36 

PRIMARY  ACCOUNTS. 
Assets — 

Property  Owned  as  Investment — 
I.  Physical  Property  Owned — 

1-A.  Road  and  Equipment  to  June  30,  1907 18 

1-B.  Road  and  Equipment  since  June  30,  1907 18 

II.  Securities  Owned — 

2.  Securities  of  Proprietary,  Affiliated,  and  Controlled 

Companies — Pledged 18 

3.  Securities  Issued  or  Assumed — Pledged 19 

4.  Securities  of  Proprietary,   Affiliated,   and   Con- 

trolled Companies — Unpledged 19 

III.  Investments — 

5.  Advances  to   Proprietary,   Affiliated,   and   Con- 

trolled Companies  for  Construction,  Equipment, 

and  Betterments 20 

6.  Other  Permanent  Investments 21 

(11) 


12 

Assets — Continued. 

Working  Asseta —  p^ge. 

7.  Cash 21 

8.  Marketable  Securities 21 

9.  Loans  and  Bills  Receivable. 22 

10.  Net  Traffic,  Car  Mileage,  and  Per  Diem  Balance. . .  22 

11.  Net  Balance  Due  from  Agents  and  Conductors 22 

12.  Miscellaneous  Accounts  Receivable 22 

13.  Materials  and  Supplies 23 

14.  Other  Working  Assets 23 

Deferred  Debit  Itemsi — 

15.  Advances. 23 

16.  Insurance  Premiums  Paid  in  Advan<?e 24 

17.  Taxes  Paid  in  Advance 24 

18.  Discount  on  Securities  Issued 24 

19.  Property  Abandoned,  Chaigeable  to  Operating  Ex- 

penses   25 

20.  Cash  and  Securities  in  Sinking  and  Redemption 

Funds 27 

21.  Cash  and  Securities  in  Insurance  and  Other  Special 

Funds 27 

22.  Cash  and  Securities  in  Special  Trust  Funds 27 

23.  Items  in  Suspense 27 

Deficit—  "" 

24.  Profit  and  Loss— Balance 28 

Liabilities — 

Stock— 

25.  Capital  Stock 28 

26   Receipts  Outstanding  for  Capital  Stock 29 

27.  Stock  Liability  for  Conversion  of  Outstanding  Se- 

curities of  Constituent  Companies 29 

28.  Premium  Realized  on  Capital  Stock  Sold 29 

Mortgage,  Bonded,  and  Secured  Debt— 

29.  Funded  Debt 29 

30.  Receipts  Outstanding  for  Funded  Debt 31 

31.  Premium  Realized  on  Funded  Debt  Sold 31 

32.  Receivers*  Certificates 31 

33.  Obligations  for  Advances  Received  for  Construc- 

tion, Equipment,  and  Betterments 31 

Working  Liabilities — 

34.  Loans  and  Bills  Payable 32 

35.  Net  Traffic,  Car  Mileage,  and  Per  Diem  Balance. . .  32 


^ 


W^-# 


13 


Liabilities — Continued. 

Working  Liabilities — Continued.  Page. 

36.  Audited  Vouchers  and  Wages  Unpaid 32 

37.  Miscellaneous  Accounts  Payable 32 

38.  Matured  Dividends,  Interest,  and  Rents  Unpaid...        32 

39.  Matured  Mortgage,  Bonded,  and  Secured  Debt  Un- 

paid         33 

40.  Working  Advances  Due  to  Other  Companies 33 

41.  Other  Working  Liabilities -  -        33 

Accrued  Liabilities  Not  Due — 

42.  Dividends  Declared  and  Interest  and  Rents  Ac- 

crued, Not  Due 34 

43.  Taxes  Accrued 34 

Deferred  Credit  Items — 

44.  Operating  Reserves 34 

45.  Liability  on  Account  of  Special  Trust  Funds 35 

46.  Items  in  Suspense 35 

Appropriated  Surplus — 

47.  Surplus  Reserves 35 

48.  Additions  to  Property  through  Income  since  June 

30,1907 36 

Free  Surplus — 

49.  Profit  and  Loss — Balance 36 


V 


FORM  OF  GENERAL  BALANCE  SHEET  STATEMENT. 


ASSETS. 


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PROPERTY  OWNED  AS  INVESTMENT: 

I.  Physical  Property  Owned — 

1-A.  Road  and  Equipment  to  June  30,  1907 — 

(a)  Road. 

(b)  Equipment. 

1-B.  Road  and  Equipment  since  June  30,  1907 — 
(a)  Road. 
(6)  Equipment. 

(c)  General  Expenditures. 

II.  Securities  Owned — 

2.  Securities  of  Proprietary,  Affiliated,  and  Controlled  Com- 

panies— Pledged — 
(a)  Stocks. 
(6)  Funded  Debt. 
(c)  Miscellaneous. 

3.  Securities  Issued  or  Assumed — Pledged — 

(a)  Stocks. 

(6)  Funded  Debt. 

(c)  Miscellaneous. 

4.  Securities  of  Proprietary,  Affiliated,  and  Controlled  Com- 

panies— Unpledged — 
(a)  Stocks. 
(6)  Funded  Debt. 
(c)  Miscellaneous. 

III.  Investments — 

5.  Advances  to  Proprietary,  Affiliated,  and  Controlled  Com- 

panies for  Construction,  Equipment,  and  Betterments. 

6.  Other  Permanent  Investments — 

(a)  Physical  Property. 
(6)  Securities. 

(15) 


II 


16 

WORKING  ASSETS: 

7.  Cash. 

8.  Marketable  Securities-— 

A.  Securities  Issued  or  Assumed — Unpledged — 

(a)  Stocks. 

(ft)  Funded  Debt. 

(c)  Miscellaneous. 

B.  Other  Marketable  Securitiee— 

(a)  Stocks. 

(6)  Funded  Debt. 

(c)  Miscellaneous. 

9.  Loans  and  Bills  Receivable. 

10.  Net  TraflSc,  Car  Mileage,  and  Per  Diem  Balance, 

11.  Net  Balance  Due  from  Agents  and  Conductors. 

12.  Miscellaneous  Accounts  Receivable. 

13.  Materials  and  Supplies. 

14.  Other  Working  Assets. 
DEFERRED  DEBIT  ITEMS: 

15.  Advances — 

(a)  Advances  to  Proprietary,  Affiliated,  and  Controlled 

Companies. 
(6)  Working  Funds. 
(c)  Other  Advances. 

16.  Insurance  Premiums  Paid  in  Advance. 

17.  Taxes  Paid  in  Advance. 

18.  Discount  on  Securities  Issued— 

(a)  Discount  on  Stock. 
(6)  Discount  on  Funded  Debt, 
li.  Property  Abandoned,  Chargeable  to  Operating  Expenses, 

20.  Cash  and  Securities  in  Sinking  and  Redemption  Funds. 

21.  Cash  and  Securities  in  Insurance  and  Other  Special  Funds. 

22.  Cash  and  Securities  in  Special  Trust  Funds. 

23.  Items  in  Suspense. 

DEFICIT: 

24.  Profit  and  La*?s— Balance. 


i 


STOCK: 


LIABILITrBS. 


25.  Capital  Stock— 

(a)  Common  Stock. 
(6)  Preferred  Stock, 
(c)  Debenture  Stock. 


17 

26.  Receipts  Outstanding  for  Capital  Stock. 

27.  Stock  Liability  for  Conversion  of  Outstanding  Securities 

of  Constituent  Companies. 

28.  Premium  Realized  on  Capital  Stock  Sold. 

MORTGAGE,  BONDED,  AND  SECURED  DEBT: 

29.  Funded  Debt— 

(a)  Mortgage  Bonds. 

(6)  Collateral  Trust  Bonds. 

(c)  Plain  Bonds,  Debentures,  and  Notes. 

(d)  Income  Bonds. 

(«)  Equipment  Trust  Obligations, 

(/)  Miscellaneous  Funded  Obligations. 

30.  Receipts  Outstanding  for  Funded  Debt. 

31.  Premium  Realized  on  Funded  Debt  Sold. 

32.  Receivers'  Certificates. 

33.  Obligations    for    Advances    Received    for    Construction, 

Equipment,  and  Betterments. 

WORKING  LIABILITIES: 

34.  Loans  and  Bills  Payable. 

35.  Net  TraflBc,  Car  Mileage,  and  Per  Diem  Balance. 

36.  Audited  Vouchers  and  Wages  Unpaid. 

37.  Miscellaneous  Accounts  Payable. 

38.  Matured  Dividends,  Interest,  and  Rents  Unpaid. 

39.  Matured  Mortgage,  Bonded,  and  Secured  Debt  Unpaid. 

40.  Working  Advances  Due  to  Other  Companies. 

41.  Other  Working  Liabilities. 

ACCRUED  LIABILITIES  NOT  DUE: 

42.  Dividends    Declared  and    Interest  and    Rents  Accrued, 

Not  Due. 

43.  Taxes  Accrued. 

DEFERRED  CREDIT  ITEMS: 

44.  Operating  Reserves — 

(a)  Reserves  for  Replacement  of  Property. 
(6)  Reserves  for  Other  Purposes. 

45.  Liability  on  Account  of  Special  Trust  Funds. 

46.  Items  in  Suspense. 

90303—09 3 


4    .r" 


/ 


48. 


18 

APPROPRIATED  SURPLUS: 
47.  Surplus  Reserves — 

(a)  Reserves  Invested  in  Sinking  and  Redemption  Funds. 

(b)  Reserves  Invested  in  Insurance  and  Other  Special 

Funds. 

(c)  Reserves  Not  Specifically  Invested. 
Additions  to  Property  through  Income  since  June  30  1907 

FREE  SURPLUS: 

49.  Profit  and  Loss— Balance. 

XEXT    EXPLAXATORY    OF     BALANCE    SHEET 

ACCOUNTS. 

ASSETS. 
PROPERTY  OWNED  AS  INVESTMENT. 
I.  Physical  Property  Owned. 
1-A.  Road  and  Equipment  to  June  30,  1907. 

This  account  should  include  the  balances  carried  in  the 
General  Ledger  showing  the  value  of  Road  and  Equipment 
as  It  stood  on  June  30,  1907,  subdivided  between  (a)  Road 
and  (6)  Equipment,  when  the  subdivision  can  be  accu- 
rately made. 

1-B.  Road  and  Equipment  since  June  30,  1907. 

This  account  should  include  amounts  expended  and  charged 
in  accordance  with  the  Classifications  of  Expenditures  for 
Road  and  Equipment  and  Expenditures  for  Additions  and 
Betterments  since  June  30,  1907.  These  amounts  should  be 
Bubclassified:  (a)  Road,  (6)  Equipment,  (c)  General  Expend- 
itures. 

II.  Securities  Owned. 
2.  Securities  of  Proprietary,  AflSliated,  and   Controlled  Com- 
panies—Pledged. 

This  account  should  include  the  book  value  of  securities 
of  proprietary,  affiliated,  and  controlled  companies  whose 
property  is  used  by  or  forms  a  part  of  the  railway  system 
of  the  respondent  company,  which  securities  are  pledged 
as  collateral  security  for  any  of  the  respondent  company's 
funded  debt  or  other  outstanding  obligations.  It  should  in- 
clude securities  of  union  depot,  terminal,  bridge,  ferry,  and 


19 


similar  companies  owned  by  the  respondent  company  and 
pledged  to  secure  its  outstanding  obligations  whep  the  prop- 
erty of  those  companies  is  used  by  the  respondent  company 
in  the  transaction  of  its  own  transportation  business. 

Amounts  reported  in  this  account  should  be  classified  under 
the  subheadings:  (a)  Stocks,  (6)  Funded  Debt,  (c)  Miscel- 
laneous. 

See  text  of  accounts  Nos.  25  and  29  for  description  of  items 
classed  as  "Capital  Stock"  and  "Funded  Debt."  Among 
the  items  that  should  be  cla^ised  as  "Miscellaneous"  are 
receivers'  certificates  and  demand  or  short-time  notes  issued 
by  proprietary  companies,  which  do  not  come  within  the 
character  of  obligations  classed  as  funded  debt.     . 

3.  Securities  Issued  or  Assumed — Pledged. 

This  account  should  include  the  book  value  of  securities 
issued  by  the  respondent  company,  and  securities  issued  by 
other  companies,  payment  having  been  assumed  by  the  re- 
spondent company,  which  have  been  pledged  as  collateral 
for  other  securities  issued  by  the  respondent  company. 

The  par  value  of  securities  reported  under  this  caption 
should  be  included  in  the  amount  of  capital  stock  or  funded 
debt  of  the  respondent  company  under  general  account 
**  Stock  "  or  ''Mortgage,  Bonded,  and  Secured  Debt." 

Amounts  reported  under  this  caption  should  be  classified 
under  the  subheadings:  (a)  Stocks,  (6)  Funded  Debt,  (c)  Mis- 
cellaneous. 

See  text  of  account  No.  25,  ''Capital  Stock,"  and  No.  29, 
"Funded  Debt,"  for  description  of  items  classed  under  sub- 
headings (a)  Stocks  and  (6)  Funded  Debt.  Under  subheading 
(c)  Miscellaneous  should  be  grouped  the  balances  representing 
issued  or  assumed  obligations  (other  than  stocks,  bonds,  or 
certificates  of  indebtedness  maturing  more  than  one  year  after 
date  of  ist-ue)  which  are  owned  by  the  respondent  company 
and  pledged  by  it  as  collateral  security. 

Note.— This  account  is  not  intended  to  cover  securities  guaranteed 
only. 

4.  Securities  of  Proprietary,   Afiiliated,  and  Controlled  Com- 

panies—Unpledged . 

This  account  should  include  the  book  value  of  unpledged 
securities  of  proprietary,  affiliated,  or  controlled  companies 


mm 


Il 


20 


whose  property  is  used  by  or  forms  a  part  of  the  railway 
system  of  the  respondent  company,  the  securities*  being  held 
for  the  purpose  of  preserving  the  integrity  of  the  system. 
There  should  be  included  under  this  caption  the  book  value 
of  investments  in  the  securities  of  union  depot,  terminal, 
bridge,  ferry,  and  similar  companies  when  the  property  of 
those  companies  is  used  by  the  respondent  company  in  the 
transaction  of  its  own  transportation  business  and  said  securi- 
ties are  in  its  treasury  unpledged. 

Amounts  reported  in  this  account  should  be  classified  under 
the  subheadings:  (a)  Stocks,  (6)  Funded  Debt,  (c)  Miscel- 
laneous. 

See  text  of  account  No.  2  for  description  of  items  classed  as 
Miscellaneous. 

Note.— This  account  Is  not  Intended  to  cover  securities  guaranteed 
only,  or  any  deemed  by  the  respondent  company  as  "Marlcetable 
Securities." 

III.  Investments. 

5.  Advances  to  Proprietarj%  Affiliated,  and  Controlled  Com- 
panies for  Construction,  Equipment,  and  Betterments. 

Except  as  provided  below,  there  should  be  included  in  this 
account  all  cash  advances  made  to  proprietary,  affiliated,  and 
controlled  companies  to  enable  said  companies  to  pay  for  con- 
Btniction,  equipment,  and  additions  and  betterments,  which 
advances  may  be  carried  in  open  accounts  by  the  respondent 
company.  ^Tien  the  companies  to  which  said  advances  are 
made  issue  notes  or  other  securities  to  the  rec^pondent  com- 
pany for  the  payment  of  said  advances,  the  cost  of  said  notes 
or  securities  should  be  transferred  from  this  account  to  account 
No.  2,  if  said  securities  are  pledged  as  collateral  for  obligations 
issued,  or  to  be  issued,  by  the  respondent  company,  or  to 
account  No.  4  if  held  unpledged. 

In  case  advances  are  made  to  proprietary,  affiliated,  or  con- 
trolled companies  for  the  purposes  above  mentioned,  with  the 
understanding  and  intention  that  the  advances  nhall  be  liqui- 
dated by  the  company  to  which  made,  either  in  cash  realized 
from  the  issuance  and  sale  of  its  own  securities,  or  by  the 
issuance  of  securities  to  the  respondent  company,  which  the 
latter  may  sell  or  hold  in  its  treasury  as  free  assets  at  its 


21 


pleasure,  the  amounts  so  advanced  should  be  included  in 
account  No.  15,  "Advances." 

.  Other  Permanent  Investments. 

(a)  Physical  Property  .—This  account  should  include  invest- 
ments in  property  not  used  for  railway  purposes  or  outside 
operations,  such  as  coal  and  other  mines,  timber  lands,  saw- 
mills, hotels  (not  a  part  of  the  railway  property)  with  their 
furniture  and  fittings,  buildings  and  property  used  for  com- 
mercial purposes;  land  scrip  acquired  for  the  purpose  of 
locating  upon  and  securing  title  to  public  lands;  investments 
in  property  not  used  for  railway  purposes  and  for  which  no 
titles  or  securities  for  titles  are  held;  and  other  property  that 
has  been  acquired  in  anticipation  of  future  necessity  or  use, 
but  which  is  not  at  present  a  part  of  the  carrier's  property 
used  in  carrying  on  its  transportation  business  or  outside 
operations. 

(6)  Securities. — This  account  should  include  investments  in 
the  securities  of  steamship  lines,  express  companies,  or  other 
enterprises  which  it  is  necessary  or  desirable  for  the  respond- 
ent company  to  control  or  to  be  interested  in  for  the  purpose  of 
maintaining  the  integrity  of  its  transportation  system,  pro- 
vided such  securities  be  not  considered  "Marketable  Securi- 
ties" (account  No.  8).  This  account  should  also  include 
securities,  not  provided  for  in  accounts  Nos.  2,  3,  and  4,  that 
may  be  pledged  in  connection  with  mortgage,  bonded,  and 
secured  debt  (see  accounts  Nos.  29  and  33);  also  memberships 
in  boards  of  trade  and  other  conunercial  organizations  when 
such  memberships  have  a  permanent  value. 


WORKING  ASSETS. 
7.  Cash. 


8 


This  account  should  include  current  funds  in  the  hands  of 
financial  officers  and  agents,  deposits  in  banks  or  trust  com- 
panies available  for  use  on  demand,  including  deposits  to  pay 
declared  dividends  or  matured  coupons,  and  cash  in  transit 
for  which  agents  and  conductors  receive  current  credit. 
Marketable  Securities. 

This  account  should  include  the  cost  or  book  value  of  ail 
securities  which  arie  held  in  the  company's  treasury  unpledged 
and  free  for  sale  and  which  it  is  not  necessary  or  desirable  for 


ui^ 


22 


the  respondent  company  to  hold  for  the  purpose  of  maintaining 
the  integrity  of  its  railway  system.  Such  securities  should  be 
subdivided  to  show: 

A.  Securities  held  in  the  treasury  of  the  respondent  com- 
pany, whether  securities  of  its  own  issue  or  securities  the  pay- 
ment of  which  it  has  assumed. 

B.  Other  securities. 

These  securities  should  be  further  classified  as  stocks,  funded 
debt,  and  miscellaneous. 

Note.— The  par  value  of  securiUes  entered  under  A  should  be 
Included  under  accounts  Nos.  25  and  2»,  "Capital  Stock"  and  "Funded 
Debt." 

9.  Loans  and  Bills  Receivable. 

This  account  should  include  the  book  value  of  all  collectible 
obligations  in  the  form  of  loans  and  bills  receivable  or  other 
similar  evidences  of  money  receivable  on  demand  or  within 
a  time  not  exceeding  one  year. 

Note.— This  does  not  Include  time  loans  which  mature  more  than 
one  year  after  date  of  Issue,  considered  as  investments,  or  loans  to 
proprietary,  affiliated,  or  controUed  companies,  such  as  are  described 
under  accounts  Nos.  5  and  15a. 

10.  Net  Traffic,  Car  Mileage,  and  Per  Diem  Balance. 

This  account  should  include  the  net  amounts  due  from 
other  companies  on  account  of  interline  freight  and  ticket 
balances  and  balances  resulting  from  the  interchange  of  cars 
on  a  per  diem  or  a  mileage  basis.  Amounts  due  to  the  owners 
of  private  cars  for  per  diem  or  mileage  on  cars  should  be  con- 
sidered the  same  as  amounts  due  to  other  railway  companies. 

11.  Net  Balance  Due  from  Agents  and  Conductora. 

This  account  should  include  the  net  balance  due  in  current 
accounts  from  agents,  and  train,  sleeping-car,  and  dining-car 
conductors,  train  auditors,  porters,  and  others.  Amounts 
advanced  to  general  and  special  agents  as  working  funds  should 
not  be  included. 

12.  Miscellaneous  Accounts  Receivable: 

This  account  should  include  amounts  due  for  audited 
accounts,  such  as  those  due  from  the  United  States  or  other 
governments  for  transportation  of  mails  and  government  pro- 
perty, and  from  express  companies  for  express  facilities  fur- 
nished under   contract;    miscellaneous   bills  against   other 


23 


railway  companies,  corporations,  firms,  and  individuals; 
ground  rents  collectible;  interest  collectible  on  bills  and  ac- 
counts receivable,  and  on  mortgages,  deposits,  and  securities; 
and  other  similar  items. 

Note.— The  amount  to  be  reported  under  this  account  Is  not  the 
net  balance  between  accounts  Nos.  12  and  37. 

13.  Materials  and  Supplies. 

This  account  should  include  the  balances  representing  the 
value  of  all  unapplied  material,  and  the  value  of  material 
temporarily  in  use  and  not  charged  out,  such  as  articles  in 
process  of  manufacture  by  the  company;  telegraph  and  tele- 
phone material;  fuel;  stationery;  dining-car  supplies,  etc. 

14.  Other  Working  Assets. 

This  account  should  include  items  of  working  assets  not 
covered  by  accounts  Nos.  7  to  13,  inclusive.  It  is  intended 
to  include  asset  items  that  have  not  reached  the  stage  of 
audited  accounts  properly  classed  under  account  No.  12, 
** Miscellaneous  Accounts  Receivable,"  and  yet  have  been 
advanced  beyond  the  stage  of  accounts  properly  classed  under 
account  No.  23,  * '  Items  in  Suspense. ' '  This  account  includes 
such  items  as  fines  imposed  by  postal  authorities  in  process 
of  collection  from  parties  at  fault;  amounts  due  from  other 
roads  for  mileage  or  tickets  honored  for  which  reports  or 
accounts  have  not  been  rendered  or  received;  advanced 
charges  billed  out  on  waybills  not  reported  received  at  the 
end  of  the  month,  and  similar  items. 

DEFERRED  DEBIT  ITEMS. 

15.  Advances. 

(a)  Advaruxs  to  Proprietary,  Affiliated,  and  Corw-olled  Com- 
panies.—This  account  should  include  amounts  advanced  to 
proprietary  and  subsidiary  companies  for  purposes  other  than 
construction,  purchase  of  equipment,  or  additions  and  better- 
ments, as  provided  for  in  account  No.  5.  It  should  include 
advances  on  open  accoimt  for  the  purpose  of  paying  interest 
on  the  funded  debt  of  proprietary  or  subsidiary  companies, 
deficits  resulting  from  the  operations  of  such  companies,  and 
other  advances  not  to  be  included  in  capital  account  and 
not  represented  by  the  physical  property  of  said  proprietary 
or  subsidiary  companies. 


i 


I 


24 

There  should  also  be  included  in  this  subdivision  amounts 
advanced  to  proprietary,  affiliated,  or  controlled  companies 
to  enable  such  companies  to  pay  construction,  equipment, 
and  additions  and  betterments  expenditures  when  it  is  the 
understanding  or  intention  that  the  advances  shall  be  liqui- 
dated by  the  company  to  which  made,  either  in  cash  realized 
from  the  issuance  and  sale  of  its  securities,  or  by  the  issuance 
of  its  securities  to  the  company  making  the  advances,  which 
securities  the  latter  company  may  sell  or  hold  in  its  treasury 
as  free  assets  at  its  pleasure,  it  being  considered  not  necessary 
that  the  company  receiving  said  securities  shall  hold  them 
for  the  purpose  of  maintaining  the  integrity  of  its  railway  sys- 
tem.   (See  accounts  Noe.  2,  3,  and  4.) 

(6)  Working  Funds. — ^This  account  should  include  amounts 
advanced  to  general  and  special  agents,  officers  and  employees 
of  the  engineering  department,  and  other  officers  and  employ- 
ees as  working  funds  from  which  certain  expenditures  are  to 
be  made  and  accounted  for  by  the  persons  to  whom  the  advances 
are  made.  It  also  includes  advances  to  fast  freight  lines  and 
union  depot  and  other  terminal  companies  as  working  funds 
to  be  used  in  paying  the  current  expenses  of  such  companies 
in  advance  of  regular  monthly  settlements. 

(c)  Other  Advances.— Thia  account  should  include  other 
advances  not  properly  classified  under  (a)  and  (6)  above  or 
under  account  No.  6,  "Advances  to  Proprietary,  Affiliated, 
and  Controlled  Companies  for  Construction,  Equipment,  and 
Betterments." 

16.  Insurance  Premiums  Paid  in  Advance. 

This  account  should  include  the  debit  balances  representing 
premiums  paid  in  advance  for  fire,  boiler,  accident,  plate 
glass,  liability,  and  kindred  insurance,  to  be  absorbed  by 
monthly  chaiges  to  operating  expenses  and  outside  operations 
during  the  term  of  the  insurance. 

17.  Taxes  Paid  in  Advance. 

This  account  should  include  the  excess  of  taxes  paid  over 
the  proportion  accrued  against  the  income  of  the  period  covered, 

18.  Discount  on  Securities  Issued. 

(a)  IXscount  on  Stock.—When  stocks,  included  under 
account  No.  25  at  theif  par  value,  are  issued  or  sold  at  a  dis- 
count, the  discount  should  be  reported  in  this  account  and,  if 
the  stock  is  not  to  be  retired  or  converted,  carried  on  the 


J^, 


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25 


balance  sheet  permanently  or  until  extinguished  by  premiums 
realized  on  subsequent  sales  of  the  same  class  of  stock.  If  the 
stock  is  to  be  retired  or  converted,  the  discount  should  be 
charged  to  Profit  and  Loss  or  against  the  premium  realized, 
if  any,  at  the  date  of  such  retirement  or  conversion. 

If  the  premium  in  account  No.  28,  "Premium  Realized  on 
Capital  Stock  Sold,"  is  less  in  amount  than  the  discount 
included  in  this  account,  it  should  be  deducted  herefrom  and 
the  net  amount  included  in  this  accoimt.  If  the  premium 
in  account  No.  28  is  greater  than  the  discoimt  charged  in  this 
account,  the  discount  should  be  deducted  therefrom  and  the 
difference  included  in  account  No.  28. 

(6)  Discount  on  Funded  Debt. — \Vhen  bonds  are  issued  or 
sold  at  a  discount  they  should  be  included  in  account  No.  29, 
"Funded  Debt,"  at  their  par  value.  The  discount  should  be 
charged  to  Income  in  such  equal  annual  installments  during 
the  life  of  the  bonds  as  will  extinguish  the  discount.  The 
carrier  may,  however,  at  its  option,  charge  to  Profit  and  Loss 
all  of  the  discount  or  any  part  of  it  remaining  at  any  time 
unextinguished;  but  the  charge  to  Income  in  any  one  year 
must  not  exceed  the  amount  of  the  annual  installment  appli- 
cable to  that  year.  The  discount  remaining  unextinguished 
should  be  included  in  this  account. 

If  the  premium  in  account  No.  31,  "Premium  Realized  on 
Funded  Debt  Sold,"  is  less  in  amount  than  the  discount  in- 
cluded in  this  account,  it  should  be  deducted  herefrom  and 
the  net  amount  reported  in  this  account.  If  the  premium  in 
account  No.  31  is  greater  than  the  discount  charged  in  this 
account,  the  discount  should  be  deducted  from  the  premium 
and  the  difference  included  in  account  No.  31. 

19.  Property  Abandoned,  Chargeable  to  Operating  Expenses. 

This  account  is  intended  as  a  suspense  account  to  which  may 
be  chaiged  certain  costs  representing  important  pieces  of  prop- 
erty abandoned  in  the  course  of  improvement  or  betterment 
work  when  the  cost  of  such  property  would,  if  included  in  the 
operating  expenses  for  a  single  year,  unduly  burden  such  ac- 
counts for  that  year.  It  is  to  be  used  only  after  permission  of 
the  Interstate  Commerce  Commission  has  been  asked  and  given 
and  is  not  to  be  applied  to  lands  abandoned  or  equipment  re- 
tired from  service.  Amounts  included  herein  are  to  be  redis- 
tributed to  operating  expenses  through  a  period  of  years,  the 


27 


number  of  which  will  be  determined  when  permiaeion  to  use 
the  account  is  granted. 

To  this  account  may  be  charged  the  cost,  lees  salvage,  of  re- 
placing in  kind  any  of  the  following  property:  Station  build- 
ings, enginehouses,  turntables,  shop  buildings,  and  terminal 
yards,  including  buildings  and  other  structures  therein,  re- 
moved or  abandoned  in  the  course  of  replacing  them  with  im- 
proved structures  or  facilities;  bridges  and  trestles  abandoned 
by  reason  of  replacing  them  with  structures  of  greater  capacity 
or  permanency;  interlocking  apparatus  abandoned  in  the 
course  of  eliminating  grade  crossings  or  of  other  improvements; 
block  and  other  signal  apparatus  replaced  with  improved  appa- 
ratus; and  fuel  stations,  grain  elevators,  storage  warehouses, 
docks,  wharves,  light  and  power  plants,  and  all  other  important 
miscellaneous  structures  abandoned  in  the  couree  of  replacing 
them  with  enlarged  or  improved  property. 

To  this  account  may  also  be  charged  the  cost,  less  salvage, 
of  main  line  and  sidings,  including  track  material  abandoned 
by  r^iaon  of  change  of  line  or  location ;  and  the  cost,  less  salvage, 
of  rails,  track  fastenings,  and  frogs  and  switches  released  from 
track  on  account  of  relaying  with  heavier  rails.  For  the  pur- 
poses of  this  account  the  cost  of  replacing  rails,  track  fastenings, 
and  frogs  and  switches  should  be  computed  upon  the  basis  of 
the  cost  of  replacing  the  original  weight  of  the  rails,  track 
fastenings,  and  frogs  and  switches,  at  the  price  per  ton  paid 
for  the  material  put  in  anew. 

This  account  may  also  include  the  cost  of  removing  old  mate- 
rial and  all  other  incidental  expenses  directly  connected  with 
the  abandonment  of  property  the  cost  of  which  is  included  in 
this  account. 

Note  A.-The  amount  charged  to  this  account  for  property  aban- 
doned should  be  concurrently  credited  to  the  appropriate  accounts 
under  Additions  and  Betterments. 

HoTB  B.— The  phnse  "unduly  burden  such  accounts,"  used  above, 
should  not  be  interpretej  as  meaning  that  a  carrier  is  at  liberty  to 
make  charges  for  abandoned  property  directly  to  Operating  Expenses, 
or  to  Operating  Expenses  through  the  account  "  Property  Abandoned, 
Chargeable  to  Operating  Expenses,"  in  view  of  its  financial  ability  to 
make  such  charges  directly  in  one  year  and  its  inability  to  make  such 
charges  in  another  year.  It  shouU  be  l^membered  that  the  charges 
Included  in  Operating  Expenses  are  designed  to  cover  the  current 
cost  of  maintaining  and  operating  the  property,  and  that  the  Property 
Abandoned  accounts  are  designed  to  cover  any  unusual  expenditures 
from  year  to  year. 


f 


s 


20.  Cash  and  Securities  in  Sinking  and  Redemption  Funds. 
This  account  should  include  the  amount  of  cash  and  the  cost 

or  book  value  of  live  securities  in  the  hands  of  trustees  of  sink- 
ing and  other  funds  for  the  purpose  of  redeeming  outstanding 
obligations.  Any  live  securities  of  the  respondent  company 
held  by  such  trustees  should  be  included  in  the  amounts  re- 
ported under  the  appropriate  subheadings  of  account  No.  25, 
* '  Capital  Stock, ' '  or  account  No.  29,  "  Funded  Debt. ' ' 

21.  Cash  and  Securities  in  Insurance  and  Other  Special  Funds. 
This  account  should  include  the  ledger  balances  covering 

the  amount  of  cash  and  the  cost  of  securities  in  the  hands  of 
trustees  or  managers  of  insurance  funds,  pension  funds,  and 
other  funds  that  have  been  raised  by  the  carrier  for  specific 
purposes  (except  special  trust  fimds  and  sinking  funds  for  the 
retirement  of  obligations).  The  amount  reported  in  this  ac- 
count should  agree  with  the  amoimt  reported  in  account 
No.  476,  "  Reserves  Invested  in  Other  Special  Funds." 

22.  Cash  and  Securities  in  Special  Trust  Funds. 

This  account  should  include  the  ledger  balances  covering 
the  amount  of  cash  and  the  cost  of  securities  in  the  hands  of 
trustees  or  managers  of  employees'  savings  funds,  relief,  hos- 
pital, and  other  association  funds  when  such  trustees  or  man- 
agers are  acting  for  the  carrier  in  the  administration  of  such 
funds.  If  such  funds  are  held  in  the  carrier's  treasury  not 
invested  and  unidentified  they  should  be  included  in  account 
No.  7,  "Cash."  The  amount  reported  in  this  account  should 
agree  with  the  amount  reported  in  account  No.  45,  "Lia- 
bility on  Accoimt  of  Special  Trust  Funds." 

23.  Items  in  Suspense. 

In  this  account  should  be  included  suspense  accounts 
showing  debit  balances  that  can  not  be  entirely  cleared  and 
disposed  of  until  additional  information  is  received,  such  as 
freight  claims  paid  when  found  to  be  correct  but  in  advance 
of  investigation  with  other  carriers;  charges  for  work  done  or 
materials  furnished  for  which  bills  have  not  been  received  from 
the  proper  departments;  items  awaiting  adjustment  between 
accounts,  such  as  cost  of  work  done  in  advance  of  receipt  of 
proper  authority  or  appropriation;  accounts  covering  the  cost 
of  operation  of  gravel  pits  and  quarries  to  be  apportioned  on 
output;  debit  balances  in  "Shop  Expense"  and  "Store  Ex- 


28 


-»» 


pense  accounts;  also  accounts  to  be  spread  over  a  stated 
term  not  provided  for  in  account  No.  18  or  elsewhere;  and 
debit  balances  in  operating  reserve  accounts  to  be  cleared 
by  future  charges  to  operating  expenses. 


DEFICIT. 


24.  Profit  and  Loss — Balance. 

In  case  the  debit  balance  in  the  Profit  and  Loss  Account  is 
less  than  the  total  of  accounts  Noe.  47  and  48,  under  the  cap- 
tion * 'Appropriated  Surplus,"  the  amounts  of  these  accounts 
ehould  be  stated  in  short  column  on  the  credit  side  of  the  bal- 
ance sheet  and  the  total  brought  down .  From  this  total  should 
be  deducted  the  Profit  and  Loss  debit  balance  and  the  net 
amount  remaining  should  be  extended  as  "  Profit  and  Loss- 
Balance"  under  "Free  Surplus."  If,  however,  the  debit 
balance  of  the  Profit  and  Loss  Account  is  in  excess  of  the  total 
of  accounts  Nos.  47  and  48  the  amount  of  these  accounts  should 
be  stated  in  short  column  on  the  debit  side  of  the  balance 
sheet  and  the  total  deducted  from  the  Profit  and  Loss  debit 
balance,  the  difference  being  shown  as  "Profit  and  Loss — Bal- 
ance ' '  under  ' '  Deficit . ' ' 


LXABILITIES. 


STOCK: 


;;: 


25.  Capital  Stock. 

In  this  account  should  be  entered  the  full  amount  of  the 
capital  stock  issued  and  outstanding,  whether  all  or  any  part 
of  same  is  held  by  the  public,  by  other  railway  companies,  in 
the  company's  treasury,  pledged  or  unpledged,  or  by  the  trus- 
tees of  sinking  or  other  funds  for  the  redemption  of  outstanding 
obligations,  or  for  other  special  purposes.  The  amounts  en- 
tered in  this  account  should  be  subdivided  as  follows: 

(a)  Common  Stock. — The  par  value  of  common  stock  issued 
and  outstanding. 

(ft)  Preferred  Stock. — The  par  value  of  first,  second,  or  other 
preferred  stock  issued  and  outstanding. 

(c)  Debentvre  Stock. — The  par  value  of  debenture  stock  issued 
and  outstanding. 

Note.— Capital  stock  is  considered  as  "issued"  when  certificates  are 
signed,  sealed,  and  placed  witli  the  proper  officer  for  sale  and  delivery. 
All  capital  stock  issaed  ani  not  canceled  is  considered  to  be  "out- 
standing." 


29 

26.  Receipts  Outstanding  for  Capital  Stock. 

When  capital  stock  is  sold,  to  be  paid  ior  in  installments, 
the  amounts  received  in  such  installments  should  be  included 
in  this  account.  When  such  stock  has  been  paid  for  in  full, 
and  the  receipts  given  for  the  installments  paid  are  sur- 
rendered in  exchange  for  regular  stock  certificates,  the  par 
value  should  be  included  under  the  appropriate  subdivision 
of  account  No.  25,  "Capital  Stock."  The  premium,  if  any, 
realized  on  such  capical  stock  should  be  disposed  of  as  pro- 
vided in  the  text  of  account  No.  28,  "Premium  Realized 
on  Capital  Stock  Sold,"  while  the  discount,  if  any,  should  be 
disposed  of  as  provided  in  the  text  of  account  No.  18a,  "  Dis- 
count on  Stock." 

27.  Stock  Liability  for  Conversion  of  Outstanding  Securities 

of  Constituent  Companies. 

This  account  should  include  the  company's  liability  under 
agreements  to  exchange  its  capital  stock  for  the  outstanding 
securities  of  constituent  companies  whose  physical  property 
has  been  acquired  under  such  agreements,  but  whose  secur- 
ities have  not  yet  been  surrendered  for  exchange. 

28.  Premium  Realized  on  Capital  Stock  Sold. 

When  stocks,  included  in  account  No.  25,  "Capital  Stock," 
at  their  par  value,  are  issued  or  sold  at  a  premium,  the  premium 
realized  should  be  reported  in  this  account  and,  if  the  stock  is 
not  to  be  retired  or  converted,  carried  on  the  balance  sheet 
permanently  or  until  extinguished  by  discounts  on  subsequent 
sales  of  the  same  class  of  stock.  If  the  stock  is  to  be  retired 
or  converted,  the  premium  should  be  either  credited  to  Profit 
and  Loss  or  against  the  discount,  if  any,  suffered  at  the 
date  of  such  retirement  or  conversion. 

If  the  discount  in  account  No.  18a,  "Discount  on  Stock,"  is 
less  in  amount  than  the  premium  included  in  this  account, 
it  should  be  deducted  herefrom  and  the  net  amount  included 
in  this  account.  If  the  discount  in  account  No.  18a  is  greater 
than  the  premium  credited  in  this  account,  the  premium 
should  be  deducted  therefrom  and  the  difference  included  in 
accoimt  No.  18a. 

MORTGAGE,  BONDED,  AND  SECURED  DEBT. 

29.  Funded  Debt. 

There  should  be  entered  in  this  account  the  full  amount  of 
funded  debt  issued  by  the  respondent  company  and  outstand- 


30 


31 


ing,  or  issued  by  other  compaDies  and  outstanding  when 
the  payment  of  such  securities  has  been  assumed  by  the  re- 
spondent company,  whether  all  or  any  portion  of  said  funded 
debt  is  held  by  the  public,  by  other  railway  companies,  in 
the  company's  treasury,  pledged  or  unpledged,  held  un- 
canceled by  the  trustees  of  sinking  funds  to  retire  outstand- 
ing obligations  issued  or  assumed  by  the  respondent  company, 
or  held  by  the  trustees  of  any  other  special  funds  created  for 
the  benefit  of  the  respondent  company. 

The  amounts  included  in  this  account  should  be  subdivided 
as  follows: 

(a)  Mortgaffe  Bonds.— Bonds  secured  by  a  lien  on  the  prop- 
erty of  the  company,  except  as  provided  in  the  other  sub- 
divisions of  this  account. 

(6)  Collateral  Trust  Bond!*.— Bonds  secured  by  lien  on  securi- 
ties or  other  commercial  paper.  Stock  trust  certificates  that 
are  similar  in  character  to  collateral  trust  bonds  should  be 
included  under  this  heading,  as  should  also  short-time  col- 
lateral trust  notes. 

(c)  Plain  Bonds,  Debentures,  and  iVb<««.— Unsecured  certifi- 
cates of  indebtedness.  Short-time  notes  (having  a  life  of  one 
year  or  less)  given  in  payment  of  temporary  indebtedness 
should  not  be  included  under  this  heading.  Short-time  notes 
secured  by  collateral  should  be  classed  with  collateral  trust 
bonds.  Debentures  should  be  clearly  distinguished  from 
debenture  stock. 

(d)  Income  Bonds.—Bonds  which  are  a  lien  on  a  carrier's 
revenue  alone,  or  bonds  which,  while  being  a  lien  on  its  road 
and  franchises,  can  claim  payment  of  interest  only  in  case 
interest  is  earned. 

(e)  Equipment  Trust  Obligations. —Equipment  bonds,  equip- 
ment notes,  or  car  trust  notes  secured  by  a  lien  on  specific 
equipment,  such  lien  having  been  created  in  connection  with 
the  acquisition  of  the  equipment  securing  the  obligation. 

(/)  Miscellaneous  Funded  Obligations.— AW  other  funded 
obligations  not  provided  for  by  the  other  subdivisions  of 
this  account,  including  real-estate  mortgages  executed  or  as- 
sumed by  a  carrier,  and  other  similar  obligations. 

Note  A.— Jonds  are  considered  "issued  "  when  they  are  certified  by 
tnistees  and  placed  with  the  proper  officer  for  sale  and  delivery. 
"  Outstanding  bonds  "  include  all  bonds  issued  and  not  canceled. 

Note  B.— This  account  is  not  intended  to  cover  securities  when  th« 
ptvment  ot  either  principal  or  interwt  has  been  guaranteed  only. 


\ 
4r. 


\^.-l 


30.  Receipts  Outstanding  for  Funded  Debt, 

When  funded  debt  is  sold,  to  be  pwiid  for  in  installments,  the 
amounts  received  in  such  installments  should  be  included  in 
this  account.  Upon  final  payment  of  purchase  price  and  the 
surrender  of  receipts  given  for  the  installments  paid  in  ex- 
change for  the  regular  securities,  the  par  value  of  the  funded 
debt  so  issued  should  be  transferred  to  the  proper  subdivision 
of  account  No.  29,  "Funded  Debt."  The  premium  realized, 
if  any,  should  be  disposed  of  as  provided  in  the  text  of  ac- 
count No.  31,  "Premium  Realized  on  Funded  Debt  Sold," 
while  the  discount,  if  any,  should  be  disposed  of  as  provided 
in  the  text  of  account  No.  186,  "Discount  on  Funded  Debt," 

31.  Premium  Realized  on  Funded  Debt  Sold. 

When  bonds  are  issued  or  sold  at  a  premium,  they  should  be 
included  under  account  No.  29,  "Funded  Debt,"  at  their  par 
value.  The  premium  should  be  credited  to  Income  in  such 
equal  annual  installments  during  the  life  of  the  bond  as  will 
extinguish  the  premium .  A  carrier  may,  however,  at  its  option, 
credit  to  Profit  and  Loss  such  premium  or  any  part  of  it  at 
any  time  unextinguished;  but  the  credit  to  Income  in  any 
one  year  must  not  exceed  the  amount  of  the  annual  installment 
applicable  to  that  period.  The  premium  remaining  unex- 
tinguished should  be  reported  in  this  account. 

If  the  discount  in  account  No.  186,  "Discount  on  Funded 
Debt,"  is  less  in  amount  than  the  premium  included  in 
this  account,  it  should  be  deducted  herefrom  and  the  net 
amount  included  in  this  account.  If  the  discount  in  account 
No.  186  is  greater  than  the  premium  credited  in  this  account, 
the  premium  should  be  deducted  from  the  discount  and  the 
difference  included  in  account  No.  186. 

32.  Receivers'  Certificates. 

This  account  should  include  the  par  value  of  outstanding 
certificates,  notes,  or  other  obligations  issued  by  receivers  in 
charge  of  and  operating  the  property  of  a  carrier,  and  the  par 
value  of  certificates,  notes,  or  other  obligations  issued  by 
receivers  and  assumed  upon  reorganization. 

33.  Obligations   for   Advances    Received    for   Construction, 

Equipment,  and  Betterments. 

Proprietary,  affiliated,  and  controlled  companies  should 
show  in  this  account  the  amounts  advanced  to  them  for 


32 


33 


constniction,  equipment,  and  additions  and  betterments  ex- 
penditures. These  amounts,  if  advanced  by  another  carrier, 
should  be  reported  by  it  in  account  No.  5,  "Advances  to 
Proprietary,  Affiliated,  and  Controlled  Companies  for  Construc- 
tion, Equipment,  and  Betterments. '' 

WORKING  LIABILITIES. 

34.  Loans  and  Bills  Payable. 

This  account  should  include  the  balances  representing  obli- 
gations outstanding  in  the  form  of  loans  and  bills  payable  or 
other  similar  evidences  of  money  borrowed,  payable  on 
demand  or  within  a  time  not  exceeding  one  year,  which  are 
not  properly  classed  under  account  No.  29,  "Funded  Debt." 

35.  Net  Traffic,  Car  Mileage,  and  Per  Diem  Balance. 

This  account  should  include  the  net  amounts  due  to  other 
companies  on  account  of  interline  freight  and  ticket  balances 
and  balances  resulting  from  interchange  of  cars  on  a  per  diem 
or  a  mileage  basis.  Amounts  due  to  the  owners  of  private 
cars  for  per  diem  or  mileage  on  cars  should  be  considered  the 
same  as  amounts  due  to  other  railway  companies. 

36.  Audited  Vouchers  and  Wages  Unpaid. 

This  account  should  include  the  amount  of  audited  vouchers 
or  accounts  and  audited  pay  rolls  unpaid  on  the  date  of  the 
balance  sheet.  It  should  include  unclaimed  wages  and  out- 
standing pay  and  time  or  discharge  checks  issued  in  payment 
of  wages. 

37.  Miscellaneous  Accounts  Payable. 

There  should  be  included  in  this  account  unpaid  and  out- 
standing drafts  drawn  by  station  agents,  unpaid  and  outstand- 
ing drafts  drawn  on  the  company  in  settlement  of  freight 
claims,  conductors'  rebate  and  extra-fare  checks  not  presented 
for  redemption,  meal  checks  and  tickets  outstanding,  deposits 
of  controlled  companies,  and  other  items  of  the  nature  of 
demand  liabilities  not  covered  by  accounts  Nos.  34,  35,  36, 
38,  and  39. 

Note.— The  amount  to  be  reported  under  this  account  Is  not  the  net 
halanoe  between  accounts  Nos.  12  and  37. 

38.  Matured  Dividends,  Interest,  and  Rents  Unpaid. 

This  account  should  include  the  amount  of  dividends  pay- 
able on  capital  stock  and  unpaid,  uncalled  for,  or  unclaimed 
at  the  date  of  the  balance  sheet,  including  dividends  payable 


\ 


on  the  first  day  of  the  month  following  that  for  which  the 
balance  sheet  is  made;  the  amount  of  matured  and  unpaid 
interest  on  the  funded  debt  of  the  respondent  company, 
and  of  other  companies  when  payment  has  been  assumed  by 
the  respondent  company,  including  interest  which  matures 
on  the  first  day  of  the  month  following  that  for  which  the 
balance  sheet  is  made;  unpaid  dividends  on  the  stock  and 
impaid  interest  on  the  funded  debt  of  other  companies  when 
same  are  payable  by  the  respondent  company  as  all  or  a 
portion  of  the  rent  due  under  leases;  and  all  other  rents  due 
imdor  leaees  which  have  become  payable. 

39.  Matured  Mortgage,  Bonded,  and  Secured  Debt  Unpaid. 

This  account  should  include  the  amount  of  matured  mort- 
gage, bonded,  and  secured  debt  payable  but  not  yet  paid, 
including  bonds  drawn  for  redemption  through  the  operation 
of  sinking  and  redemption  fund  agreements.  Obligations 
which  mature  on  the  first  day  of  the  month  following  that  for 
which  the  balance  sheet  is  made  should  be  included  in  this 
account. 

40.  Working  Advances  Due  to  Other  Companies. 

Proprietary,  affiliated,  and  controlled  companies  should 
include  in  this  account  the  amounts  advanced  to  them  for 
general  purposes,  such  as  advances  to  pay  interest  on  their 
funded  debt  not  included  in  account  No.  33,  "Obligations  for 
Advances  Received  for  Construction,  Equipment,  and  Better- 
ments," deficits  resulting  from  their  operation,  and  advances 
for  construction,  equipment,  and  additions  and  betterments, 
when  such  advances  are  made  under  the  conditions  stated  in 
account  No.  15a,  "Advances  to  Proprietary,  Affiliated,  and 
Controlled  Companies,"  and  when  that  account  is  used  to 
report  the  advances  by  the  company  making  them. 

41.  Other  Working  Liabilities. 

This  account  should  include  items  of  working  liabilities  not 
covered  by  accounts  Nos.  34  to  40,  inclusive.  It  should 
include  liability  items  that  have  not  reached  the  stage  of 
audited  liabilities  and  become  actually  payable,  yet  are  obli- 
gations of  the  company  and  advanced  beyond  the  stage  of 
accounts  properly  classed  under  account  No.  46,  "Items  in 
Suspense,"  such  as  retained  percentages  due  contractors  to  be 
paid  on  completion  of  contracts;  deposits  for  construction  of 


34 


35 


i 


side  tracks,  to  be  refunded  on  the  basis  of  an  agreed  percentage 
of  the  earnings  from  the  traffic  handled  over  the  tracks;  pre- 
paid charge?  billed  out  on  waybills  not  taken  into  the  month's 
accounts;  and  other  similar  items.  It  should  include  also 
balances  to  the  credit  of  employees*  savings  funds,  and  relief, 
hospital,  and  other  association  funds  when  such  funds  are  held 
unidentified  iii  the  carrier's  treasury  and  are  included  in 
account  No.  7,  'Cash." 

ACCRUED  LIABILITIES  NOT  DUE. 

42.  Dividends  Declared  and  Interest  and  Rents  Accrued,  Not 

Due. 
This  account  should  include  the  amount  of  dividends  on 
capital  stock,  interest  on  funded  debt,  including  interest  on 
funded  debt  assumed,  and  rents  under  leases,  accrued  to  the 
date  for  which  the  balance  sheet  is  made  but  not  payable 
until  after  the  first  day  of  the  following  month.  There  should 
be  included  also  as  "rents  accrued  "  the  amount  of  accrued 
dividends  on  the  stock  and  accrued  interest  on  the  funded 
debt  of  other  companies  when  such  dividends  and  interest 
are  paid  as  all  or  a  portion  of  the  rent  under  leases  from  tho-e 
companies. 

43.  Taxes  Accrued. 

This  account  should  include  the  amount  of  taxes  accrued  and 
charged  s^ainst  income  in  excess  of  the  amount  paid.  WTien 
the  respondent  company  leasej  the  property  of  another  com- 
pany and,  under  the  terms  of  the  lease,  agrees  to  pay  or  assume 
the  taxes  that  may  be  levied  upon  or  assessed  against  such 
property,  the  taxes  accrued  on  such  property  should  be  in- 
cluded in  this  account  and  not  in  account  No.  42.  When, 
however,  the  taxes  are  paid  by  the  lessor  company,  the  full 
amount  of  cash  rent  to  be  paid  by  the  lessee  should  be 
included  in  account  No.  42. 

DEFERRED  CREDIT  ITEMS. 

44.  Operating  Reserves. 

This  account  should  include  the  ledger  balances  in  the 
reservei  created  to  cover  past  depreciation  of  property; 
reservej  created  since  July  1,  1907,  by  charge  i  to  Operating 
Expenses  to  cover  accrued  depreciation  of  equipment  and  of 
way  and  structures  when  a  plan  for  such  purpose  has  been 


v^ 


i 


adopted  by  the  carrier;  reserves  created  by  charges  to  Oper- 
ating Revenues  or  to  Operating  Expenses  to  provide  for  over- 
charge, personal  injury,  insurance,  and  other  claims;  and 
similar  reserves.  The  credits  in  this  account  should  be  sub- 
divided as  follows: 

(a)  Reserves  for  Replacement  of  Property. 

(6)  Reserves  for  Other  Purposes. 

The  credit  balance  in  sinking  fund  reserve  account  should 
not  be  included  in  this  account.  See  account  No.  47a,  "Re- 
serves Invested  in  Sinking  and  Redemption  Funds." 

45.  Liability  on  Account  of  Special  Trust  Funds. 

This  account  should  include  the  ledger  balances  covering 
the  amount  of  cash  and  the  cost  of  securities  in  the  hands  of 
trustees  or  managers  of  employees'  savings  fimds,  relief,  hos- 
pital, and  other  association  funds,  when  such  trustees  or 
managers  are  acting  for  the  carrier  in  the  administration  of 
such  funds.  The  amount  reported  in  this  account  should 
agree  with  the  amount  reported  in  account  No.  22,  "Cash  and 
Securities  in  Special  Trust  Funds." 

46.  Items  in  Suspense. 

Under  this  caption  should  be  included  suspense  accounts 
showing  credit  balances  that  can  not  be  entirely  cleared  and 
disposed  of  until  additional  information  is  received,  such  as 
collections  by  general  agents  and  others  to  cover  prepayment 
of  shipments  originating  on  lines  of  other  carriers;  amounts 
realized  from  sale  of  damaged,  unclaimed,  and  over  freight 
and  held  pending  claim;  switching  charges  of  other  carriers 
collected  and  held  awaiting  bills  from  such  carriers;  amounts 
received  from  sale  of  mileage  tickets  to  be  disposed  of  as 
mileage  is  honored  by  the  respondent  or  other  carriers;  amounts 
collected  for  milling-in-transit  privileges,  to  be  cleared  when 
products  are  shipped;  credit  balances  in  "Shop  Expense" 
and  "Store  Expense"  accounts;  and  other  similar  items. 

APPROPRIATED  SURPLUS. 

47.  Surplus  Reserves. 

In  this  account  should  be  grouped  all  appropriations  of  sur- 
plus (except  as  covered  by  account  No.  48),  including  unex- 
pended balances  of  appropriations  for  additions  and  better- 
ments. The  account  should  be  subdivided  under  the  following 
heads: 


36 

(a)  Reserves  Invested  in  Sinking  and  Redemption  Funds. 

Amounts  charged  against  Income  Account  for  sinking  fund 
payments;  accretions  to  sinking  funds  in  the  hands  of  trustees; 
also  amounts  realized  and  turned  over  to  sinking  fund  trustees 
or  used  in  the  purchase  of  outstanding  obligations  either  by 
sinking  fund  trustees  or  by  the  respondent  company,  when 
such  sums  are  realized  from  other  sources  than  the  company's 
income.  All  credits  to  this  account  to  cover  amounts  turned 
over  to  sinking  fund  trustees,  and  all  accretions  to  sinking  funds 
collected  by  trustees,  should  be  debited  to  the  account  with 
such  trustees  in  account  No.  20. 

(6)  Reserves  Invested  in  Other  Special  Funds. 

(c)  Reserves  Not  Specifically  Invested. 

4S.  Additions  to  Property  through  Income  since  June  30, 1907. 

This  account  should  include  the  cost  of  property  acquired 
by  expenditures  of  appropriations  from  Income  since  June  30, 
1907,  whether  such  expenditures  are  for  new  lines  or  for  addi- 
tions and  betterments  to  existing  lines.  The  amount  standing 
to  the  credit  of  this  account  should  be  included  in  the  amount 
reported  under  account  No.  1-B,  "Road  and  Equipment  since 
June  30,  1907." 

FREE  SURPLUS. 

'  49.  Profit  and  Loss — Balance. 

This  account  should  include  the  balance,  if  any,  standing 
to  the  credit  of  the  Profit  and  Loss  Account. 

Wlien  there  is  a  debit  balance  in  the  Profit  and  Loss 
Account,  but  such  balance  does  not  exceed  the  total  credit 
balance  of  accounts  Nos.  47  and  48,  the  latter  are  to  be  stated 
in  short  column,  the  total  brought  down,  and  the  debit  balance 
of  account  No.  49  deducted  therefrom,  the  difference  being 
extended  to  the  total  column  as  the  net  appropriated  surplus. 
WTien  the  debit  balance  standing  in  account  No.. 49  exceeds 
the  total  credit  balance  of  accounts  Nos.  47  and  48,  the  ac- 
counts are  to  be  stated  as  prescribed  in  the  text  of  account 
No.  24. 

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